whether insurance premium of employee paid by employer be taxable in the hands of the employee as tax perquisite?
Can this be shown as a Reimbursement to employee?
is there anyway to structure this transaction as tax free in the hands of the employee?
What kind of insurance is it?
If health insurance, it is an allowable business expense.
But if it is a life/term insurance etc (for which the obligation to pay premium lies with the employee), such premiums would be taxable as perquisite in the hands of the employee and an eligible business expense for the employer.
Showing perquisites as reimbursements would be incorrect I think.
CAclubindia
